State should level playing field for energy

Published: Thursday, September 27, 2012 at 4:30 a.m.

Last Modified: Wednesday, September 26, 2012 at 6:52 p.m.

North Carolina lawmakers should lift a ban on “third party” sales of electricity to level the economic playing field and spur development of sustainable energy sources.

North Carolina is one of only four states that restrict residents, businesses, the military and local governments from providing electricity for use at the place it is generated, according to the Database of State Incentives for Renewables and Efficiency.

This regulatory barrier to the free market is inhibiting the development of solar and other renewable energy sources, as N.C. Rep. Chuck McGrady pointed out Monday at a Duke University environmental law conference.

McGrady cited an example of a solar energy company installing photovoltaic panels on the roof of a large commercial store like Walmart. Under current law, the solar company can’t sell the power it generates on the roof directly to Walmart; it has to sell the electricity to Duke Energy, which then sells it back to Walmart.

“This doesn’t really set up a situation that allows the market to do what it could do here,” McGrady said. “I suggest to you that we’d have a lot more in renewable energy; it’s an area of business out my way in the west that’s just taking off.”

The law inhibits development of renewable, sustainable energy sources such as wind, solar and geothermal power that are suitable for more dispersed facilities than the big plants that use nuclear, coal or natural gas.

Being able to generate and use power in the same spot would help residents and industry lower their energy costs in the long term, according to the N.C. Sustainable Energy Association, which is pushing to change the law.

Electric bills in North Carolina have increased 25 percent for residents, 27 percent for businesses and 34 percent for industries over more than a decade, the group states, citing figures from the U.S. Energy Information Administration. Duke Energy raised rates 7.2 percent in February after seeking a 15 percent increase. Duke says its price for electricity in both Carolinas is still almost 22 percent lower than the national average and, when inflation is factored in, 30 percent lower than 12 years ago.

McGrady, speaking at the conference called “Conservative Visions for Our Environmental Future,” said the free market should dictate consumers’ energy choices in North Carolina. He’s right. As an environmental advocate and a Republican, he understands that “conservative” and “conservationist” don’t have to be mutually exclusive terms.

Allowing third-party electricity sales would “give consumers a competitive choice to lock in long-term, stable electric rates and lower utility costs,” the N.C. Sustainable Energy Association states. It would also create jobs and business and investment opportunities across the state and “remove a substantial barrier for North Carolina’s military bases in their efforts to become energy independent.”

This is a case where the interests of free markets, the economy and environment converge. The General Assembly can show some leadership by giving consumers, businesses, local governments and the military a choice when it comes to generating their own electricity.

<p>North Carolina lawmakers should lift a ban on third party sales of electricity to level the economic playing field and spur development of sustainable energy sources.</p><p>North Carolina is one of only four states that restrict residents, businesses, the military and local governments from providing electricity for use at the place it is generated, according to the Database of State Incentives for Renewables and Efficiency.</p><p>This regulatory barrier to the free market is inhibiting the development of solar and other renewable energy sources, as N.C. Rep. Chuck McGrady pointed out Monday at a Duke University environmental law conference.</p><p>McGrady cited an example of a solar energy company installing photovoltaic panels on the roof of a large commercial store like Walmart. Under current law, the solar company can’t sell the power it generates on the roof directly to Walmart; it has to sell the electricity to Duke Energy, which then sells it back to Walmart.</p><p>This doesn’t really set up a situation that allows the market to do what it could do here, McGrady said. I suggest to you that we’d have a lot more in renewable energy; it’s an area of business out my way in the west that’s just taking off.</p><p>The law inhibits development of renewable, sustainable energy sources such as wind, solar and geothermal power that are suitable for more dispersed facilities than the big plants that use nuclear, coal or natural gas.</p><p>Being able to generate and use power in the same spot would help residents and industry lower their energy costs in the long term, according to the N.C. Sustainable Energy Association, which is pushing to change the law.</p><p>Electric bills in North Carolina have increased 25 percent for residents, 27 percent for businesses and 34 percent for industries over more than a decade, the group states, citing figures from the U.S. Energy Information Administration. Duke Energy raised rates 7.2 percent in February after seeking a 15 percent increase. Duke says its price for electricity in both Carolinas is still almost 22 percent lower than the national average and, when inflation is factored in, 30 percent lower than 12 years ago.</p><p>McGrady, speaking at the conference called Conservative Visions for Our Environmental Future, said the free market should dictate consumers’ energy choices in North Carolina. He’s right. As an environmental advocate and a Republican, he understands that conservative and conservationist don’t have to be mutually exclusive terms.</p><p>Allowing third-party electricity sales would give consumers a competitive choice to lock in long-term, stable electric rates and lower utility costs, the N.C. Sustainable Energy Association states. It would also create jobs and business and investment opportunities across the state and remove a substantial barrier for North Carolina’s military bases in their efforts to become energy independent.</p><p>This is a case where the interests of free markets, the economy and environment converge. The General Assembly can show some leadership by giving consumers, businesses, local governments and the military a choice when it comes to generating their own electricity.</p>